EU Agreement on US Trade Deal Within Reach, Says Top Lawmaker

Why It Matters

A timely EU‑U.S. agreement will avert costly tariff escalations and preserve transatlantic supply‑chain stability, while shaping the political leverage each side holds over the other.

Key Takeaways

• EU aims to finalize trade deal by end of May.
• Trump threatens 25% car tariffs if EU delays implementation.
• Sunrise clause links EU duties to U.S. steel tariff cuts.
• Parliament pushes 2028 sunset, ending deal before Trump's term.
• EPP backs early vote; left groups demand stronger safeguards.

Pulse Analysis

The European Parliament’s chief trade negotiator, Bernd Lange, signaled that the EU‑U.S. trade agreement is likely to be sealed by the end of May, paving the way for a June plenary vote. The deal, signed in principle at President Donald Trump’s Scottish resort last July, still requires EU legislation to eliminate duties on U.S. industrial goods while the United States maintains a 15 % tariff on most European exports. With Trump threatening to raise car tariffs to 25 % if Brussels drags its feet, time pressure has intensified.

Within Brussels, the final text is still being hammered out. Lawmakers from the centre‑right European People’s Party are urging an early vote, while centrist and left‑wing MEPs demand stronger safeguards, including a sunrise clause that would tie the EU’s tariff reductions to a U.S. cut on steel and aluminium duties. A competing sunset clause seeks to expire the agreement by March 2028, effectively ending it before Trump leaves office. The Commission and member states argue that too many strings could alienate Washington, risking a trade war.

If the deal survives the parliamentary vote, it will lock in a 15 % U.S. duty on most European goods while granting American manufacturers duty‑free access to key EU markets. For automotive and aerospace suppliers, certainty on tariffs could revive cross‑Atlantic production lines that have been stalled by the threat of punitive duties. Conversely, a delayed or watered‑down agreement could push firms to diversify away from the U.S., reshaping trade flows and prompting EU members to seek alternative markets. Stakeholders are therefore watching the May trilogue as a bellwether for transatlantic economic stability.